Which income limit applies for stimulus check calculation if spouse has ITIN ?

[ahmadka2]

I have an SSN with a dependent child who also has an SSN, but my spouse has an ITIN. I know that in light of the new rules, mixed status families like me became eligible for stimulus payments, for members who had an SSN.

My question is how do I correctly calculate the stimulus payment I'm eligible for, if I filed 2019 tax return jointly with my spouse who has an ITIN ?

For example, for the first stimulus payment from last year, the max income limit to receive any stimulus payment was $198,500 for joint fillers, and $99,000 for single filers. Since my wife has ITIN with whom I filed 2019 tax jointly, which limit here applies to me ?

[NCperson]

you don't  have to calculate it

just enter how much you actually received for each of the 1st two stimulus payments and TT will put the correct answer on Line 30. 

the 2019 tax return has nothing to do with this.  it is all about the income, marital status and children under the age of 17 on your 2020 tax return LESS what you ACTUALLY received for the 1st two payments.

why do you want to calculate this yourself? see page 58

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[ahmadka2]

No, I'm not asking from tax filing point of view per se. I want to understand my eligibility given the question I asked.

Also in TurboTax help, I'm told that I'll automatically be asked about stimulus payments during 'Federal Review' section if the software thinks I'm eligible for them. I am NOT asked about stimulus payments there, so I want to understand why TurboTax is thinking why I'm not eligible. Hence my question in this thread.

Lastly, I mentioned my 2019 tax return because the stimulus check payments depend on the AGI reported on your last tax return, which at this stage is the 2019 tax return for me.

[NCperson]

I get it, but please understand your eligibility is all about 2020; it is incorrect that the Recovery Credits  are based on your 2019 tax return. 

if you look at the link I provided, page 58 and look at line 11 of the worksheet it is asking for the AGI from your tax return and this is in the 2020 instruction manual; it does not ask for your 2019 income.

further, based on line 12 of that same worksheet, it requires you to use your filing status, so if you are married, your income limit is based on $150,000 

if you are not eligible, the TT won't even ask you the questions. 

regardless of what TT states, the IRS is the source of how this works and I have provided the worksheet from the IRS instruction manual for the 1040 tax return.  

Does that help? 

[ahmadka2]

I still think this conversation is going in the wrong direction. I am not saying TurboTax is doing anything incorrectly. I am only asking how the income limit that applies to me changes if my spouse has an ITIN or not.

In other words, suppose I filed jointly and my income is below the max phase out limit for joint fillers, but above the max phase out limit for single fillers. In such a case, which limit applies to me if my spouse has an ITIN, and so is ineligible for stimulus payments ? ... It's a simple question and I'm not sure why this discussion is discussing other stuff but this question.

[LenaH]

The limit that will apply to you is the amount for joint filers. Since you are married filing joint, your credit (if qualified) will be reduced for an adjusted gross income (AGI) over $150,000. 

The first Economic Impact Payment was not made to married couples filing joint returns unless both spouses had Social Security numbers valid for employment or at least one spouse was a member of the military. 

However, in December 2020, the COVID-related Tax Relief Act of 2020 changed this requirement. As a result, a married couple filing a joint return is eligible for a partial 2020 Recovery Rebate Credit when only one spouse has a Social Security number valid for employment. If you and your spouse didn’t receive the first Economic Impact Payment because one of you did not have a Social Security number valid for employment, you may be eligible to claim the 2020 Recovery Rebate Credit. 

Questions and Answers about the First Economic Impact Payment — Topic C: Calculating My First Econom... (updated 3/16/21)

@ahmadka2

[NCperson]

@ahmadka2 -

<<In other words, suppose I filed jointly and my income is below the max phase out limit for joint fillers, but above the max phase out limit for single fillers. In such a case, which limit applies to me if my spouse has an ITIN, and so is ineligible for stimulus payments ? ... It's a simple question and I'm not sure why this discussion is discussing other stuff but this question.>>

The limit that applies to you is the 'married filing joint' limit - because that is how you are filing.  That is the simple answer and is documented by the IRS worksheet for the Recovery Credit. I provided that link in an earlier thread. 

It does not matter if your spouse has an ITIN or an SS#, the critical is that you are married, filing joint. (and you can NOT file 'single' or HOH..you could file "separate" but it won't buy you anything if your income is above $75,000)

here is the worksheet snippet the IRS uses to determine the limit. 

please confirm you now have your answer!